Criminal Justice News

Wednesday, May 23, 2012

Couple Sentenced for Conspiracy to Embezzle from City of Garland

Total
of Seven Defendants Convicted in Conspiracy That Caused a Nearly $2 Million
Loss to the City

DALLAS—Kenneth Wayne Brown, 51, and his
wife, Lea Michele Brown, 47, both of Westminster, Texas, were sentenced today
by Chief U.S. District Judge Sidney Fitzwater to 42 months and 34 months,
respectively, in federal prison for their roles in a conspiracy to embezzle
funds from the city of Garland, Texas, announced U.S. Attorney Sarah R.
Saldaña. In addition, Judge Fitzwater ordered that Kenneth Brown pay $304,553,
and Leah Brown pay $142,554 in restitution.

Five defendants have previously been
convicted for their roles in the conspiracy. In early December 2011, Duane
Milford Stailey, 44, and his wife, Sharon Ware Stailey, 46, both of Leonard,
Texas, pleaded guilty to the same conspiracy charge and were each sentenced to
15 months in federal prison. In early October 2011, Jerry Don Diviney, 69, of
Durant, Oklahoma, pleaded guilty; he was sentenced to 21 months in federal
prison.

The former risk management adjustor for
the city of Garland, Patricia Leathers, 63, of Rowlett, Texas, pleaded guilty
in December 2010 and is presently serving a 53-month sentence. Her sister,
Connie M. Powell, 60, of Garland, pleaded guilty to her role involving checks
exceeding $64,000, resulting in a three-year term of probation.

According to trial testimony and case
documents, Leathers obtained checks issued by the city of Garland by submitting
false claims for reimbursement for damage to vehicles, homes, and landscaping
purportedly caused by city trucks or employees. Diviney provided Leathers with
names and addresses to use for the false claims and deposited or cashed many of
the checks. He then shared the proceeds with Leathers. The Browns and the Staileys
negotiated checks payable to themselves and others and returned the bulk of the
cash to Diviney and Leathers. The total loss to the city has been determined to
be $1,968,479.

The investigation was conducted by the
FBI, the Garland Police Department, and the Garland Offices of the City
Attorney and Internal Auditor. Assistant U.S. Attorneys Katherine Miller and
Brian McKay prosecuted.